Small-Cap Surge: Has the Election Rally Been Priced In?
Yesterday, small-cap stocks $iShares Russell 2000 ETF(IWM)$ reached their highest level since November 2021. Meanwhile, rocket and nuclear power stocks surged over 20%.
Some say the rally in small-cap and meme stocks signals we're in the late stage of a bull market, with limited upside for large-cap stocks, suggesting a pullback in October.
1. Nuclear stocks soar by 40%! Meme stocks or investing in the future?
Nuclear concept stocks $Oklo Inc.(OKLO)$ , $NuScale Power(SMR)$ , and $NANO Nuclear Energy Inc.(NNE)$ surged nearly 40% yesterday due to the booming AI concept.
In light of the massive energy consumption behind AI computing power, tech giants like Microsoft, Google, and Amazon are actively seeking nuclear energy as a solution for their data centers.
On October 16, $Amazon.com(AMZN)$ announced that it has signed an agreement with $Dominion Resources(D)$ in Virginia to explore the development of small modular reactors (SMRs) near Dominion's existing North Anna Nuclear Power Station.
$Tesla Motors(TSLA)$ has also long been involved in the energy storage business. In the second quarter of 2024, Tesla deployed 9.4 GWh of battery storage products, setting a record for the highest quarterly deployment, with a quarter-over-quarter increase of 129% and a year-over-year increase of 157%, showing impressive growth.
Others believe there won’t be a significant pullback until after the November elections.
2. Election rally has been priced in or not?
Analysts at Bank of America noted that the average monthly returns of the $.SPX(.SPX)$ in the fourth year of a presidential term typically show lackluster performance from January to May, a summer rebound from June to August, a pre-election pullback in September and October, followed by a post-election rally in November and December.
However, both September and October are currently seeing market rally.
Is the market pricing in the election rally?
What’s your take?
Will market pullback in October or post election?
Would you invest in nuclear stocks?
Leave your comments and also post to win tiger coins~
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Is the market pricing in the election rally?
What’s your take?
Will market pullback in October or post election?
Would you invest in nuclear stocks?
Leave your comments and also post to win tiger coins~
I think there's a chance we could see a pullback in October, as historical trends often indicate some caution before the election. However, if the momentum continues, especially with nuclear energy being viewed as a solution for tech giants’ energy needs, we might see sustained interest in those stocks.
As for investing in nuclear stocks, I’m intrigued by the potential they hold. With the push for sustainable energy sources and the intersection with AI, it seems like a sector that could thrive. I’d definitely consider adding some exposure there, especially if the fundamentals remain strong.
@Tiger_comments
10月16日，$亞馬遜(AMZN)$宣佈與$自治領資源(D)$在弗吉尼亞州探索在Dominion現有的北安娜核電站附近開發小型模塊化反應堆（SMR）。
$特斯拉(TSLA)$也長期涉足儲能業務。2024年第二季度，特斯拉部署了9.4 GWh的電池儲能產品，創下季度部署量最高紀錄，環比增長129%，同比增長157%，增長勢頭亮眼。
其他人則認爲不會出現大幅回調直到11月選舉之後。